Buru Energy (ASX: BRU) is completing the Paradise-1 well in the onshore Canning Basin for testing rather than plugging and abandoning it after recovering live oil to surface during abandonment preparations.
This led to a successful remedial cement job on the 7 inch casing over the oil zone in the Lower Grant/Anderson Formation.
The company said testing the oil zone would require the mobilisation of a completion string and test equipment and that it will now prepare a suitable test program for consideration with joint venture partner Mitsubishi Corporation.
It added it was not looking forward to evaluating if the oil is commercially producible and if it could be a sign of a new regional oil play.
Paradise-1 had originally being drilled in late 2010 and had encountered the oil zone based on indications of hydrocarbons from sidewall cores from approximately 904 to 914 metres. However a test of the zone could not be carried out at that time.
The decision was made subsequently to deepen the well this year to intersect the Lower Laurel Formation. This uncovered more evidence of a basin centred gas accumulation in the Canning Basin.
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